The E. Providence school district is doing away with recess for Elementary School aged children. http://www.boston.com/news/local/rhode_island/articles/2010/08/17/ri_school_district_doing_away_with_recess/?p1=Upbox_links
This is pretty much always a horrible idea and research shows it  will most likely lead to more behavior problems and stressed out children. Phys Ed is not a replacement for recess either because it is structured and the children do not get to use their imagination/social skills to create their own play. If anything, we need more recess for children; especially for the younger Elementary School. Here are just some of the many articles/studies that support the need for recess:
http://well.blogs.nytimes.com/2009/01/28/school-recess-improves-behavior/

http://educationalissues.suite101.com/article.cfm/the_many_benefits_of_recess_in_schools

http://www.azcentral.com/news/articles/2010/03/15/20100315recess-time-not-cut.html